Three Movie Producers Dragged To Court Over N435 Million Unpaid Debt.

In a bid to recover a debt of N435,480,241.20, Asset management Corporation of Nigeria AMCON has dragged three movie producers,Charles Osa Novia,Amata Fred Okaruere,Duker Fidelis,and their company Project Nollywood Production Limited before a Federal high court in Lagos.

According to a statement of claim accompanied with claimant’s witness written statement on oath sworn to by officer of credit Enforcement unit of AMCON Mrs Afiniki Oyedele-Lawal and filed before the court by the law firm of  MacMilton It was alleged that:

The Project Nollywood Production Limited Company was a customer of Eco Bank Nigeria Plc.

The Bank via a duly accepted Offer Letter dated March 28, 2007, granted the Defendant a Term Loan Facility.

The Loan was secured by:

Debenture on the fixed and floating assets of the  Project Nollywood Production Limited Company

Lien on Master Tapes of all films produced under this Facility.

Assignment of copyright to all films produced under this Facility.

Warehousing of all finished Compact Discs (CDs), Video Compact Discs (VCD), Digital Video Discs (DVD) etc. produced.

Promissory Note of the Company

Personal Guarantees of all the directors of the Company supported by statement of net worth.

Irrevocable Domiciliation of sale proceeds with the Bank/Sales Collection Agreement.

Comprehensive Insurance on all assets of the Company with the Bank noted as first loss payee.

The Offer was duly executed by Charles Osa Novia  Amata Fred Okaruere   as directors of the Project Nollywood Production Limited Company

By a Letter dated February 10th,2010 and duly signed by Duker Fidelis as a Director,the defendants proposed  a repayment plan for the loan.

By a Letter dated May 26, 2010, the Defendants indicated their inability to maintain the repayment plan they had earlier proposed.

The inability of the Defendants to repay the loan led to the acquisition of the loan by the AMCON as a non-performing loan.

AMCON wrote demand Letter to the Defendants without any response from the Defendants.

The balance the Defendants owe AMCON  stand in the sum of 435,480,241.20 (Four Hundred and Thirty-Five Million, Four Hundred and Eighty Thousand, Two Hundred and Forty-One Naira, Twenty Kobo) as at April 29, 2022 on which interest continues to accrue.

AMCON pleads and will rely at the trial of this suit on any other relevant documents in proof of its claim before this Honourable Court.

WHEREOF the AMCON claims against the Defendants jointly and severally are as follows:

The  sum of N435,480,241.20 ( Four Hundred and thirty five million Four Hundred and Eighty Thousand,two hundred and Four – one Naira Twenty-Kobo) being the outstanding indebtedness of the Defendants as at April 29, 2022.

Interest at the rate of Fifteen percent (15%) per annum on the said sum of N435,480,241.20 (Four Hundred and Thirty-Five Million, Four Hundred and Eighty Thousand, Two Hundred and Forty-One Naira, Twenty Kobo) from April 29, 2022 until judgment is delivered;

Interest at the rate of ten percent (10%) per annum on the judgment sum from the date of entry of final judgment in the suit until the said judgment sum is fully and finally liquidated.

An order directing the Defendants to pay AMCON the cost of this action in the sum of N5,000,000.00 (Five Million Naira Only).

Meanwhile, the presiding Judge, Chukwujekwu Aneke has adjourned the suit till 10th of May,2023 for hearing.